Risks and Opportunities | Sustainability | Mitsubishi Gas Chemical Company, Inc.

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<p>While a variety of issues involving the environment and society may represent a risk that threatens corporate sustainability, working to solve those social issues can also lead to new business opportunities. Our goal is to achieve a sustainable society and sustained corporate growth by fully understanding the risks and opportunities related to materiality, striving to reduce the risks while creating a new business model that solves social issues.</p> <div class="box-colorA"> <ul class="link-ac"> <li><a href="#ac01"><span>CSV</span></a></li> <li><a href="#ac02"><span>Environment</span></a></li> <li><a href="#ac03"><span>Social</span></a></li> <li><a href="#ac04"><span>Governance</span></a></li> </ul> </div> </section> <section class="category-box color_01" id="ac01"> <p class="category_box-ttl">CSV</p> <h2 class="category-ttl">Contribution to solving social issues through business</h2> <ul class="sdgs-list"> <li><img src="img/sdgs-icon03.png" alt="sdgs 3 GOOD HEALTH AND WELL-BEING"><span>3.9</span></li> <li><img src="img/sdgs-icon08.png" alt="sdgs 8 DECENT WORK AND ECONOMIC GROWTH"><span>8.2</span></li> <li><img src="img/sdgs-icon09.png" alt="sdgs 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE"><span>9.4, 9.5</span></li> <li><img src="img/sdgs-icon12.png" alt="sdgs 12 RESPONSIBLE CONSUMPTION AND PRODUCTION"><span>12.3</span></li> </ul> <div class="col-2"> <div class="box"> <p class="box-ttl">Risks</p> <ul> <li>Fall in share price due to decrease in future value</li> <li>Decrease in demand for products due to changes in market needs</li> <li>Shift in share of low-cost alternative materials</li> <li>Existing product obsolescence</li> </ul> </div> <div class="box"> <p class="box-ttl">Opportunities</p> <ul> <li>Creation of new markets through diversification of market needs</li> <li>Customer credibility backed by multiple industry standards</li> <li>Expansion of portfolio of distinctive, differentiated products</li> </ul> </div> </div> <p class="category-ttl">Promotion of innovative R&D</p> <ul class="sdgs-list"> <li><img src="img/sdgs-icon08.png" alt="sdgs 8 DECENT WORK AND ECONOMIC GROWTH"><span>8.2</span></li> <li><img src="img/sdgs-icon09.png" alt="sdgs 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE"><span>9.4, 9.5</span></li> </ul> <div class="col-2"> <div class="box"> <p class="box-ttl">Risks</p> <ul> <li>Delay in achievement of a more resilient business portfolio</li> <li>Failure to achieve carbon neutrality due to delay in business creation</li> <li>Delay in creation of new products and businesses due to reduced competitiveness in R&D</li> </ul> </div> <div class="box"> <p class="box-ttl">Opportunities</p> <ul> <li>Promotion of a more resilient business portfolio</li> <li>Creation of new markets through establishment of environmental solution businesses</li> <li>Creation of new products and businesses through use of DX technology</li> </ul> </div> </div> </section> <section class="category-box color_02" id="ac02"> <p class="category_box-ttl">Environment</p> <h2 class="category-ttl">Proactive response to environmental problems</h2> <ul class="sdgs-list"> <li><img src="img/sdgs-icon03.png" alt="sdgs 3 GOOD HEALTH AND WELL-BEING"><span>3.9</span></li> <li><img src="img/sdgs-icon06.png" alt="sdgs 6 CLEAN WATER AND SANITAITON"><span>6.3</span></li> <li><img src="img/sdgs-icon07.png" alt="sdgs 7 AFFORDABLE AND CLEAN ENERGY"><span>7.2</span></li> <li><img src="img/sdgs-icon11.png" alt="sdgs 11 SUSTAINABLE CITIES AND COMMUNITIES"><span>11.6</span></li> <li><img src="img/sdgs-icon12.png" alt="sdgs 12 RESPONSIBLE CONSUMPTION AND PRODUCTION"><span>12.5</span></li> <li><img src="img/sdgs-icon13.png" alt="sdgs 13 CLIMATE ACTION"><span>13.3</span></li> <li><img src="img/sdgs-icon14.png" alt="sdgs 14 LIFE BELOW WATER"><span>14.1, 14.3</span></li> </ul> <div class="col-2"> <div class="box"> <p class="box-ttl">Risks</p> <ul> <li>Increase in risk of abnormal weather and natural disasters due to climate change</li> <li>Reputational risks regarding environmental protection</li> </ul> </div> <div class="box"> <p class="box-ttl">Opportunities</p> <ul> <li>Development of CCUS (particularly CCS) and CO<sub>2</sub>-based methanol and polycarbonate businesses, and development of chemicals that use CO<sub>2</sub></li> <li>Commercial development of ammonia as a hydrogen carrier and CO<sub>2</sub>-free fuel</li> </ul> </div> </div> <p class="category-ttl">Highly energy- and resource-efficient production</p> <ul class="sdgs-list"> <li><img src="img/sdgs-icon07.png" alt="sdgs 7 AFFORDABLE AND CLEAN ENERGY"><span>7.3</span></li> <li><img src="img/sdgs-icon12.png" alt="sdgs 12 RESPONSIBLE CONSUMPTION AND PRODUCTION"><span>12.2</span></li> </ul> <div class="col-2"> <div class="box"> <p class="box-ttl">Risks</p> <ul> <li>Decline in competitive advantage due to delays in technological response to resource and energy conservation needs</li> </ul> </div> <div class="box"> <p class="box-ttl">Opportunities</p> <ul> <li>Acquisition and cross-company deployment of energy-saving technologies</li> <li>Advancement in utilization of digital technologies</li> </ul> </div> </div> </section> <section class="category-box color_03" id="ac03"> <p class="category_box-ttl">Social</p> <h2 class="category-ttl">Cultivating a corporate culture of job satisfaction</h2> <ul class="sdgs-list"> <li><img src="img/sdgs-icon04.png" alt="sdgs 4 QUALITY EDUCATION"><span>4.4</span></li> <li><img src="img/sdgs-icon05.png" alt="sdgs 5 GENDER EQUALITY"><span>5.4</span></li> <li><img src="img/sdgs-icon08.png" alt="sdgs 8 DECENT WORK AND ECONOMIC GROWTH"><span>8.5</span></li> </ul> <div class="col-2"> <div class="box"> <p class="box-ttl">Risks</p> <ul> <li>Declines in labor productivity and corporate value (economic and social value) due to outflow of personnel</li> </ul> </div> <div class="box"> <p class="box-ttl">Opportunities</p> <ul> <li>Strengthened foundation for creating innovation</li> <li>Improved employee engagement</li> </ul> </div> </div> <p class="category-ttl">Promotion of diversity and inclusion</p> <ul class="sdgs-list"> <li><img src="img/sdgs-icon04.png" alt="sdgs 4 QUALITY EDUCATION"><span>4.4</span></li> <li><img src="img/sdgs-icon05.png" alt="sdgs 5 GENDER EQUALITY"><span>5.1, 5.5</span></li> <li><img src="img/sdgs-icon08.png" alt="sdgs 8 DECENT WORK AND ECONOMIC GROWTH"><span>8.5</span></li> </ul> <div class="col-2"> <div class="box"> <p class="box-ttl">Risks</p> <ul> <li>Uniform thinking and loss of new business opportunities due to imbalance in personnel attributes and skills</li> </ul> </div> <div class="box"> <p class="box-ttl">Opportunities</p> <ul> <li>Nurturing of a culture of collaboration incorporating diverse values that is conducive to new ideas and technological innovation</li> </ul> </div> </div> <p class="category-ttl">Respect for human rights</p> <ul class="sdgs-list"> <li><img src="img/sdgs-icon04.png" alt="sdgs 4 QUALITY EDUCATION"><span>4.7</span></li> <li><img src="img/sdgs-icon08.png" alt="sdgs 8 DECENT WORK AND ECONOMIC GROWTH"><span>8.7</span></li> <li><img src="img/sdgs-icon10.png" alt="sdgs 10 REDUCED INEQUALITIES"><span>10.2, 10.3</span></li> <li><img src="img/sdgs-icon16.png" alt="sdgs 16 PEACE, JUSTICE AND STRONG INSTITUTIONS"><span>16.3, 16.10</span></li> </ul> <div class="col-2"> <div class="box"> <p class="box-ttl">Risks</p> <ul> <li>Boycotts on purchasing products and services due to human rights infringement</li> <li>Decline in evaluation as a recipient of investment</li> <li>Potential for elimination as an investment candidate or withdrawal of investment</li> </ul> </div> <div class="box"> <p class="box-ttl">Opportunities</p> <ul> <li>Contribution to realization of a sustainable economy and society</li> <li>Maintenance and securing of trust from society</li> <li>Maintenance and increase in corporate value</li> <li>Recruitment and retention of talented human resources</li> </ul> </div> </div> <p class="category-ttl">Ensuring occupational safety and health / Process safety and disaster prevention</p> <ul class="sdgs-list"> <li><img src="img/sdgs-icon03.png" alt="sdgs 3 GOOD HEALTH AND WELL-BEING"><span>3.9</span></li> <li><img src="img/sdgs-icon08.png" alt="sdgs 8 DECENT WORK AND ECONOMIC GROWTH"><span>8.5</span></li> <li><img src="img/sdgs-icon11.png" alt="sdgs 11 SUSTAINABLE CITIES AND COMMUNITIES"><span>11.6</span></li> <li><img src="img/sdgs-icon12.png" alt="sdgs 12 RESPONSIBLE CONSUMPTION AND PRODUCTION"><span>12.4</span></li> <li><img src="img/sdgs-icon13.png" alt="sdgs 13 CLIMATE ACTION"><span>13.3</span></li> </ul> <div class="col-2"> <div class="box"> <p class="box-ttl">Risks</p> <ul> <li>Recurrence of similar disasters and problems</li> <li>Loss of societal trust due to accidents or scandals</li> </ul> </div> <div class="box"> <p class="box-ttl">Opportunities</p> <ul> <li>Nurturing of a culture of safety</li> <li>Accumulation of expertise in preventive maintenance</li> </ul> </div> </div> <p class="category-ttl">Chemical/product quality and safety assurance</p> <ul class="sdgs-list"> <li><img src="img/sdgs-icon03.png" alt="sdgs 3 GOOD HEALTH AND WELL-BEING"><span>3.9</span></li> <li><img src="img/sdgs-icon12.png" alt="sdgs 12 RESPONSIBLE CONSUMPTION AND PRODUCTION"><span>12.4</span></li> </ul> <div class="col-2"> <div class="box"> <p class="box-ttl">Risks</p> <ul> <li>Loss of business opportunities due to non-compliance with chemical regulations in each country</li> <li>Loss of societal trust due to inaccurate data handling and shipping of inappropriate products</li> </ul> </div> <div class="box"> <p class="box-ttl">Opportunities</p> <ul> <li>Enhancement of business profitability through proper compliance with laws and regulations</li> <li>Enhancement of customer satisfaction and societal trust in the entire Company and Group companies</li> </ul> </div> </div> <p class="category-ttl">Promotion of socially responsible sourcing</p> <ul class="sdgs-list"> <li><img src="img/sdgs-icon12.png" alt="sdgs 12 RESPONSIBLE CONSUMPTION AND PRODUCTION"><span>12.2</span></li> <li><img src="img/sdgs-icon16.png" alt="sdgs 16 PEACE, JUSTICE AND STRONG INSTITUTIONS"><span>16.2</span></li> </ul> <div class="col-2"> <div class="box"> <p class="box-ttl">Risks</p> <ul> <li>Negative impacts on business activity due to illegal actions and compliance violations by suppliers</li> </ul> </div> <div class="box"> <p class="box-ttl">Opportunities</p> <ul> <li>Improved sustainability of society and long-term competitiveness</li> </ul> </div> </div> </section> <section class="category-box color_04" id="ac04"> <p class="category_box-ttl">Governance</p> <h2 class="category-ttl">Strengthening governance and internal control/risk management/compliance</h2> <ul class="sdgs-list"> <li><img src="img/sdgs-icon08.png" alt="sdgs 8 DECENT WORK AND ECONOMIC GROWTH"><span>8.7</span></li> <li><img src="img/sdgs-icon10.png" alt="sdgs 10 REDUCED INEQUALITIES"><span>10.2, 10.3</span></li> <li><img src="img/sdgs-icon16.png" alt="sdgs 16 PEACE, JUSTICE AND STRONG INSTITUTIONS"><span>16.2, 16.3,<br>16.5, 16.10</span></li> </ul> <div class="col-2"> <div class="box"> 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